Discontinued Operations Coverage and Legal Consultation

When it’s time to hang up your toolbelt and retire, one of your top checklist items may be to cancel your commercial insurance coverage. You have found a buyer or maybe you are shutting down the business altogether, and ending your coverage seems like a logical step before you sail off into the sunset. Or is it?

A Discontinued Operations amendment to your coverage provides products/completed operations coverage after a business is closed or stops operating. It’s conceivable that your personal assets may be exposed for losses that occur after you’ve cancelled your coverage.

Discontinued Operations coverage is offered by the LHBA GL Trust, which is limited-form coverage for retired Builders at a reduced cost. To qualify, the Builder must go a full year without conducting any operations or work. During the first year, the Builder will pay $5,000 minimum premium for a normal Indemnity Agreement. After that, the Builder may elect to purchase Limited Coverage for Retired Builders in which the contribution is $4,000 for the first year, $3,500 for the next year, $3,000 for the next year, and $2,500 for subsequent years. It is important to note that there is absolutely NO COVERAGE FOR ANY ONGOING OPERATIONS – coverage is limited to Products-Completed Operations coverage, subject to the LHBA GL Trust terms, conditions, and limitations.

A terrific benefit of being an Indemnitee (member) of the LHBA GL Trust is our offer of two (2) hours of free legal consultation to review contracts, discuss potential or open claims, and prepare for retirement by discussing Discontinued Operations coverage. It’s yet another way the LHBA GL Trust protects its Builders!

For more information on the LHBA GL Trust, please contact John Brooks at jbrooks@lhbagltrust.com or 225-999-8820.